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Library Services and Technology Act (LSTA)

This guide provides information on LSTA grant opportunities in Pennsylvania.
Tags: grants, LSTA

Accounting

Grant funds must be fully dedicated to the grant project or approved indirect costs only.  The intent of the Cash Management Improvement Act is to assure that funds are expended promptly to minimize the time that elapses between receipt of funds and their disbursement.

Budget Amendments

Formal amendments to the budget must be submitted on the Budget Revision Request Form.

Cash Management 

Award recipients agree to deposit funds in a non-interest-bearing account, an account that earns less than $100 annual interest in a one-year grant period, or a separate accounting category within an internal accounting system.

Consultant or other contractual services

If the project calls for a consultant or other contractual services, the grantee shall use a competitive request for proposal (RFP) process to select the consultant. OCL reserves the right to participate in the selection process and to approve the final selection of the consultant or subcontractor.

Indirect Cost Payments

If charging indirect costs to the grant, grantees agree to use these funds for costs that cannot be readily isolated or identified solely with the grant award.

Non-profit UGG Tip Sheet

Quick reference chart of UGG procurement requirements specifically for non-profits. 

NOTE:  Micro-purchases under Federal awards is now $10,000 and simplified acquisitions is $250,000 for all recipients.

Program Income

Award recipients are encouraged to earn income to defray program costs where appropriate. Program income is the gross income earned by an award recipient from the activities supported by grant funds or from products resulting from grant activities. It includes, but is not limited to, income from fees for services performed and from the sale of items created under a grant, usage or rental fees for equipment or property acquired under a grant, and license fees and royalties from patents and copyrights.

Program Income Earned during the Grant Period

The federal share of program income earned during the grant period (the time between the effective date of the award and the ending date of the award reflected in the final financial report) shall be retained by the grantee and, unless the grant award specifies how such income will be used, the grantee must use it in one or more of the following ways:

  1. It may be added to the existing project funds and used to further project objectives; and/or
  2. It may be deducted from the total allowable costs to determine the net allowable project costs that may be charged to the IMLS grant.

While both uses above are allowed, IMLS prefers that option #1 be followed—that program income will be added to the existing project funds and used to further project objectives.

Please note that before program income is earned, OCL and IMLS must approve the use of program income and will do so on a case-by-case basis. 

Program Income Earned after the Grant Period

Unless otherwise stated in the grant award, the grantee shall have no obligation to the federal government regarding program income earned after the end of the grant period.

For further information on program income, see: 2 CFR 200.307.

Sole Source Purchase 

This form should be used when justifying a purchase from a single or sole source without open competition in accordance with Uniform Guidance.

The sole source (non-competitive) method of procurement is to be used only as an exception when attempts to pursue competitive purchasing practices have failed or when it is determined there are circumstances where the sole source is appropriate, i.e., an item is only available from a single source, bundled services, etc. The suitability of sole source procurement must be examined on a case-by-case basis and be documented to ensure that the cost of any sole source procurement is reasonable.